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File #: ID 24-1595    Version: 1 Name:
Type: Action Item Status: Agenda Ready
File created: 11/15/2024 In control: City Council
On agenda: 12/5/2024 Final action:
Title: Approve the third amendment to the lease agreement between the City of Fresno and Tutelian Holdings I, LLC, for office space at 2440 Tulare Street, Suite 430, Civic Center Square, extending the lease term for an additional six months through February 28, 2026, in the amount of $47,243 for rent plus the proportionate share of building operating costs estimated with this extension is $27,201 for the Planning and Development Department, Housing Production, Housing Finance, and Community Development Divisions (District 3)
Sponsors: General Services Department
Attachments: 1. 24-1595 Lease Agreement, 2. 24-1595 First Amendment, 3. 24-1595 Second Amendment, 4. 24-1595 Third Amendment
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REPORT TO THE CITY COUNCIL

FROM: BRIAN BARR, Director
General Services Department

BY: DESIREE NARANJO, Property Specialist II
General Services Department

SUBJECT
Title
Approve the third amendment to the lease agreement between the City of Fresno and Tutelian Holdings I, LLC, for office space at 2440 Tulare Street, Suite 430, Civic Center Square, extending the lease term for an additional six months through February 28, 2026, in the amount of $47,243 for rent plus the proportionate share of building operating costs estimated with this extension is $27,201 for the Planning and Development Department, Housing Production, Housing Finance, and Community Development Divisions (District 3)

Body
RECOMMENDATION

Staff recommends Council approve the third amendment to the lease agreement between the City of Fresno and Tutelian Holdings I, LLC, a California limited liability company for office space at 2440 Tulare Street, Suite 430, Civic Center Square for an additional six months through February 28, 2026, in the amount of $47,243 for rent plus the proportionate share of building operating costs estimated with this extension is $27,201.

EXECUTIVE SUMMARY

The Planning and Development, Housing Production, Housing Finance, and Community Development Divisions plan to move to City-owned property located at 1255 Van Ness Avenue, upon completion of tenant improvements. Tenant improvements were initially estimated to be completed in the summer of 2025, but now delayed until winter of 2025. This is due to the need to reject the initial construction bid as it exceeded the project budget. The current lease agreement expires August 31, 2025, and therefore needs to be extended six-months to allow for the re-bidding process and completion of tenant improvements. The proposed rent for the extension is $7,873.80 per month ($1.65 per square foot) for the six-month extension ending February 28, 2026. In addition to the monthly rent due, the City shall also pay their proportionate s...

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